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HomeLocal NewsApple Takes Legal Action Against OpenAI for Alleged Trade Secret Misuse

Apple Takes Legal Action Against OpenAI for Alleged Trade Secret Misuse

Apple Takes Legal Action Against OpenAI for Alleged Trade Secret Misuse

(The Hill) – In a bold move, Apple has filed a lawsuit against OpenAI, accusing the renowned AI company and longstanding partner of attempting to extract and steal proprietary information about Apple’s innovations and undisclosed products. The alleged theft reportedly took place during job interviews with Apple’s employees.

The legal complaint, submitted to a federal court in California last Friday, charges OpenAI along with two former Apple employees, of misappropriating confidential details and transferring them to ChatGPT’s creators upon their new employment.

Among the accused are Tang Yew Tan, who dedicated 24 years to Apple as vice president of product design for the iPhone and Apple Watch before transitioning to OpenAI as its chief hardware officer. Additionally, Chang Liu, who accumulated eight years of experience as a senior system electrical engineer at Apple, now works with OpenAI.

According to Apple’s legal representatives, OpenAI has directed Apple’s personnel to bring proprietary elements—such as design prototypes, tools, or vendor communications—to interviews in order to reveal intricate details about their tasks.

Apple’s legal filing states, “Pursuing this action was not a decision made lightly. Competing in the world’s most intense markets, Apple is committed to producing the finest products and services that reflect its creativity and innovation.” The statement continued, “Nevertheless, the theft of its trade secrets is intolerable. Given the unsettling evidence uncovered so far, Apple finds it must act decisively.”

As a result of the alleged theft, Apple’s attorneys argue OpenAI’s hardware business “now rests on the shakiest of foundations, rotten to its core by its illegal reliance on misappropriated trade secrets.” 

The Hill reached out to OpenAI for comment.

The suit comes amid growing tensions between the two technology giants, which first partnered in 2024 to integrate ChatGPT into Apple’s devices. Reports emerged in May that their partnership has strained and OpenAI was considering legal action over failing to get the expected benefits from the deal. 

Upon leaving Apple last January, Liu allegedly did not confirm he returned his devices or scheduled an interview. Liu took his Apple-issued work laptop with him, which he accessed once employed by OpenAI, attorneys for Apple said, and “celebrated” it in a message to a former Apple colleague. 

Over the following weeks, Liu allegedly accessed and downloaded dozens of Apple’s confidential files related to hardware while developing for OpenAI, and he coached a former Apple colleague on how to avoid scrutiny when leaving the company. 

Apple said its investigation found other former Apple employees also emailed themselves the company’s confidential information to personal accounts when leaving for OpenAI, while some used the trade-secret information during hardware development. 

The lawsuit accuses Tan of meeting with OpenAI or its collaborators before he left Apple and discussing company meetings with a supplier, in addition to emailing himself information about Apple’s suppliers. 

At OpenAI, Tan has allegedly sought to obtain insider knowledge from Apple employees when interviewing them for roles at the ChatGPT maker, asking about the status of unannounced Apple products and directing candidates to bring “actual parts” for “show and tell” sessions.

The filing also notes Apple raised concerns to OpenAI during the early stages of its investigation in February, alleging the company did not respond.